At the beginning of the year, some organizations and people thought that they would be safe in their respective markets. Unfortunately, this is high time for them to rethink. The COVID-19 outbreak has completely changed the real definition of sourcing in Asia and what it exactly means to organizations. The disruption caused by the pandemic in 2020 has also enabled the companies and individuals to look after the internal matters and address business sustainability issues, which many businesses selected earlier. For instance, with the hiking activities in the e-commerce sector, the conventional way in which a supply chain provides raw materials is also bound to change in a feat to eliminate the carbon footprints.
Discarding the disruptions, many brands have achieved success in 2020 and are heading towards a transformation of Asian operations. Also, it ensures the efficiency and steadiness of a steady supply line.
Present Scenario of Sourcing in Asia
Hong Kong has always been an epicenter of Asia sourcing. It is the main point of trading and purchasing. However, with emerging doubts over high operational costs, it has been observed that multiple sourcing functions based out of Hong Kong are shifting to China. Several outlook reports of brands and retailers have also revealed similar trends in Southeast Asia.
Shanghai has been steadily holding the grip over the market share and developing a “sourcing hub” as companies want cost-effective positions for their sourcing teams. US retailers are not affected by the trade tensions, and they are comparatively in a better position to select China Mainland as their primary sourcing hub. They can enjoy the benefits of shifting their teams near the supplier base. Multiple clients are planning for implementing this transition to create a need for professionals in Hong King city. Moreover, it can evaluate their future options and locations from where they can source without any tensions.
Another popular hub for sourcing in Asia is Vietnam. Reasons behind its popularity are:
Remarkable foreign investment in the country’s manufacturing sector due to the massive improvement of the quality of raw materials and capacity to deliver large orders
Competitive advantages of sourcing in Asia
For these two reasons, Vietnam has successfully drawn the attention of many well-known and emerging global brands.
E-commerce revolution
E-commerce platforms have introduced a bunch of opportunities during the lockdowns. They have become the biggest achiever in retail disruption. Considering the high volume of orders, Amazon is now looking at a long-lasting partnership with mall operators who can turn Sears and J.C. Penney stores for speeding up the work process followed by the supply chains. It reflects the emergence of the e-commerce industry.
Bottom line
Retail is an important sector. The living of many people depends on this sector; therefore, it is essential to keep it running flawlessly without any disruption. Over the years, Asia sourcing has been helping many organizations in leveraging all benefits from this region, and no doubt it will be continued in the coming years. A joint effort of local workforces, governments, and foreign investors can further improve it.